BP 2013 Annual Report Download - page 150

5. Disposals and impairment – continued
Disposals
As part of the response to the consequences of the Gulf of Mexico oil spill in 2010, the group announced plans to deliver up to $38 billion of disposal
proceeds by the end of 2013. This target was reached during 2012; as at 31 December 2012, BP had announced disposals of $38 billion, and in
addition, the sale of our 50% investment in TNK-BP. During 2013 the group announced that it expects to divest a further $10 billion of assets before
the end of 2015.
$ million
2013 2012 2011
Proceeds from disposals of fixed assets 18,115 9,992 3,504
Proceeds from disposals of businesses, net of cash disposed 3,884 1,606 (663)
21,999 11,598 2,841
By segment
Upstream 1,288 10,667 1,080
Downstream 3,991 637 830
TNK-BP 16,646 ––
Other businesses and corporate 74 294 931
21,999 11,598 2,841
Proceeds from disposals for 2012 included a deposit of $632 million received in respect of the disposal in 2013 of interests in a number of central
North Sea oil and gas fields. Disposal proceeds for 2011 included the repayment of a deposit of $3,530 million received in 2010 in advance of the
expected sale of our interest in Pan American Energy LLC, which did not complete.
At 31 December 2013, deferred consideration relating to disposals amounted to $23 million receivable within one year (2012 $24 million and 2011
$117 million) and $1,374 million receivable after one year (2012 $1,433 million and 2011 $1,524 million). In addition, contingent consideration relating to
the disposals of the Devenick field and the Texas City refinery amounted to $953 million at 31 December 2013 – see Notes 20 and 26 for further
information.
Upstream
In 2013, the major disposal transaction in the segment was the sale of our interests in the BP-operated Maclure, Harding and Devenick fields and non-
operated interests in the Brae complex of fields and the Braemar field in the central North Sea to TAQA. In addition, we sold our interests in the
Yacheng field in China to Kuwait Foreign Petroleum Exploration Company, as well as other interests in the North Sea and the US.
In 2012, the major disposal transactions were the sale of our interests in the Marlin, Horn Mountain, Holstein, Ram Powell and Diana Hoover fields in
the Gulf of Mexico to Plains Exploration and Production Company, the sale of our interests in the Hugoton and Jayhawk gas production and processing
assets in Kansas, and our interest in the Jonah and Pinedale upstream operations in Wyoming, to LINN Energy, LLC, and the sale of our interests in our
Canadian natural gas liquids (NGL) business to Plains Midstream Canada ULC. In addition, we sold a number of interests in the North Sea, including the
disposal of our Southern Gas Assets to Perenco UK Ltd.
In 2011, the major disposal transactions were the sale of our interests in Colombia to Ecopetrol and Talisman, the sale of our upstream and midstream
assets in Vietnam and our investments in equity-accounted entities in Venezuela to TNK-BP, and the sale of our assets in Pakistan to United Energy
Group. In addition, we completed the disposal of half of the 3.29% interest in the Azeri-Chirag-Gunashli development in Azerbaijan to SOCAR and a
number of interests in the Gulf of Mexico to Marubeni Group.
Downstream
In 2013, gains resulted from the disposal of our global LPG business and closing adjustments on the sales of the Texas City and Carson refineries with
their associated marketing and logistics assets. Losses principally resulted from the disposal of a number of assets, principally in our global fuels
portfolio.
In 2012, gains on disposal resulted from the disposal of our interests in purified terephthalic acid production in Malaysia to Reliance Global Holdings
Pte. Ltd., retail churn in the US and a number of other assets in the segment. Losses resulted from the ongoing costs associated with our US refinery
divestments and the disposal of a number of assets in the segment portfolio.
In 2011, gains on disposal resulted from our disposal of the fuels marketing business in Namibia, Malawi, Zambia and Tanzania to Puma Energy, certain
non-strategic pipelines and terminals in the US and other assets in the segment. Losses resulted from the disposal of a number of assets in the
segment portfolio.
TNK-BP
In 2013, BP disposed of its 50% interest in TNK-BP. See Note 6 for further information.
Other businesses and corporate
In 2011, we disposed of our aluminium business in the US which resulted in a gain.
146 BP Annual Report and Form 20-F 2013